Supply surges; Air Products, Biogen, Georgia-Pacific, Diageo, Emerson, BlackRock, IDEX price

By Cristal Cody

Tupelo, Miss., April 27 – High-grade companies priced about $25 billion of issues on Monday ahead of the Federal Reserve’s two-day meeting.

Air Products and Chemicals Inc. led the day’s deal volume with a $3.8 billion five-tranche offering of senior notes (A2/A).

Biogen Inc. priced $3 billion of senior notes (Baa1/A-/) in two tranches on Monday following fixed income investor calls held Friday.

Georgia-Pacific LLC sold $2.5 billion of notes (A3/A+/) in three tranches on the tight side of guidance.

Diageo Capital plc brought $2.5 billion of senior notes (A3/A-/) in three tranches to the primary market.

Emerson Electric Co. came with $1.5 billion of senior notes (A2/A/) in three tranches.

BlackRock Inc. priced $1.25 billion of senior notes due Jan. 28, 2031 (Aa3/AA-).

IDEX Corp. sold $500 million of 10-year senior notes (Baa2/BBB/).

Snap-on Inc. priced an upsized $500 million offering of 30-year senior notes (A2/A/).

Nationwide Mutual Insurance Co. priced $1.35 billion of 30-year notes (A3/A+/) a week after postponing a 40-year issue.

Citizens Bank, NA priced $750 million of five-year senior notes (Baa1/A-/BBB+).

In addition, parent company Citizens Financial Group, Inc. sold $750 million of 10-year senior notes (/BBB+/BBB+) on Monday.

Meanwhile, Delta Air Lines, Inc. brought $3.5 billion of split-rated five-year senior secured first-lien bullet notes (Baa3/BB+/).

Kohl’s Corp. priced $600 million of five-year notes (Baa2/BBB-).

In addition, Charles Schwab Corp. was in the primary market with an offering of preferred shares (Baa2/BBB) on Monday.

Strong deal volume was anticipated this week with syndicate sources forecasting about $40 billion to $50 billion of new issuance.

Issuance may be front-loaded ahead of the Federal Reserve’s monetary policy meeting that begins on Tuesday and ends Wednesday, though no additional policy changes are expected, sources note.

The Markit CDX North American Investment Grade 33 index closed slightly tighter from Friday at a spread of 93.31 basis points.

High-grade ETFs were softer on the day.

The iShares iBoxx Investment Grade Corporate Bond ETF declined 0.81% to 128.85

The PIMCO Investment Grade Corporate Bond Index ETF closed down 0.49% at 110.07.

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